On 4 March 2026, the European Union and Canada launched negotiations for a Digital Trade Agreement (DTA) to facilitate cross-border digital trade. The DTA aims to update the existing trade framework between the parties by establishing rules for the digital economy. The proposed agreement addresses issues such as paperless trade, the legal recognition of electronic signatures, contracts and invoices, and the prohibition of customs duties on electronic transmissions. It also includes provisions on cross-border data flows, including limits on data localisation requirements and restrictions on the forced transfer of software source code. In addition, the negotiations cover protections for personal data and privacy and measures related to unsolicited commercial communications. The initiative builds on the implementation of the Comprehensive Economic and Trade Agreement (CETA).
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